The institute gives recommendations to the Government on Energy Crisis: Price maintenance crisis plan

The Institute for Social Policy has called on the Government of Kosovo to approve a <x0 crisis plan for continuous supply, for maintaining affordable prices [particularly for families in need], and for the irreversible failure of the liquidity and business enterprise to preserve our jobs,”

This institute envisions great negative impact on citizen electricity tariffs, Periscope follows.

If we make a comparison to just three years ago, we see that import exceeds energy exports for hundreds of GWh during the first quarter of IV each year. During the months of this winter, we will need energy imports and this import at a five-fold price (according to KED officials) as a result of the crisis will make electricity very expensive when tariffs are revised during April next year. ”

Below are the complete communiqué:

The energy crisis that has engulfed the world, especially Europe, has begun to feel a lot in the region as well. One of the first countries seriously hit by this crisis is Albania, whose government has now begun to speak and adopt measures to sabotage the huge negative effect this crisis could have on the welfare of citizens.

The crisis has also begun to feel in Kosovo indirectly. We now see the rising prices of broad - consumption items, the increase of these resulting from the increase in the price of derivatives. As you know, most of the consumption in Kosovo comes from import. In this direction any movement in the price of energy in countries of origin affects the Kosovo market. The second major impact of this crisis in Kosovo has now begun to be seen on oil derivative prices. The increase in oil prices affects many other sectors of social life, such as. Transport, which affects the price of basic articles.

But the biggest negative impact is expected to be on electricity tariffs. Despite energy production that Kosovo can secure at low cost during the winter months, our demand for energy increased significantly compared to generation capacities. If we make a comparison to just three years ago, we see that import exceeds energy exports for hundreds of GWh during the first quarter and the IV quarter each year. During the months of this winter, we will need energy imports and this import at a five-fold price (according to KED officials) as a result of the crisis will make electricity very expensive when tariffs are revised during April next year. Global forecasts are for the energy crisis to last at least until June of next year.

According to statistics from the Kosovo Statistics Agency, 60% of energy consumption makes up households and 9% consumers, while other consumption makes up commercials, industry and public enterprises. Of course, seizures, whatever they may be, especially the energy crisis affects more small - income families. According to data provided by ATK, approximately 11,000 people in Kosovo have monthly incomes of no more than 80 euros, while approximately 100,000 others have monthly incomes in the amount of 80-250 euros. Such salaries are not nearly enough to cope with the cost of life even without this energy crisis and rising consumer prices. And they will be absolutely insufficient to cope with the newly expensive cost.

The government of the Republic of Kosovo must pursue this crisis with seriousness and act more time at the cost of it. The government's demand for a flight from heating electricity would make sense if alternatives were better. Today in Kosovo, alternatives to heating houses with electricity can only be coal and timber. Their price will increase with increased demand for them. Moreover, coal heating during winter months turns into one of the biggest air pollutants in Kosovo settlements, especially in Pristina. And the use of timber remains one of the largest destroyers of Kosovo forests.

While countries like Albania, but EU countries, have already begun to take steps in this direction, there is no public discussion on confronting the crisis in Kosovo.

EU countries have shared hundreds of millions to absorb the impact of the energy crisis. Great Britain has earmarked 680 million euros; France, 580m euros; Greece, 500m euros, and so on. While the Government of Albania has issued an anti-action plan with these three points:

1. Ensuring an endless supply of electricity for everyone.
2. Protecting families and small businesses from rising electricity prices.
3. Guaranteed liquid funds for interaction with the electricity market, including sovereign state guarantees and 100m-euro funds for O SHEE at the end of this year and 100 million early next year.

It is urgent that the Government of the Republic of Kosovo adopt a crisis plan to cope with the energy crisis. We need to maintain the affordable prices especially for families in need, and make sure that the energy crisis does not irreverently damage the liquidity and business business of our companies to preserve their jobs.

Pristina, October 21, 2021